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Don't blame you. Very boring documents.
This was the original $3.5 million bridge note that was originally due in April of 2023 but was moved up to November 2022 in the closing for the property with Storer.
They (Feenix) send a default note that was 8-k'd by ALTD on December 15 ( https://www.otcmarkets.com/filing/html?id=16260472&guid=uU7-knejEdJ2dth ) and then ALTD filed another 8K on December 22 ( https://www.otcmarkets.com/filing/html?id=16275727&guid=uU7-knejEdJ2dth ) with a contingency that they were working together to come to a solution, releasing more money, and had made some basic concessions.
We have not gotten the final settlement yet.
My guess is they are trying to work out the settlement with Feenix and looking at the status of the uplisting. They can't do anything until they get that straightened out.
No matter what with the default letter- things are progressing it seems at the resort. A lot of roofs have been replaced. The Columbus Crew and Washington Spirit (MLS Men and Women teams) have been training there and they have a large pickleball group there now and the golf course is in the best shape in a long time from what I am hearing. It doesn't seem like the default affected the property improvements as they seem to be moving forward on all levels.
If they were going to do the uplisting, now with fresh numbers from the 10K would be the time, right? IMHO. Seems to stay in the $.02-.03 range now. We shall see!
Great DD Kat. I haven’t needed to post any D as this board has it all covered.
I guess I was the only one.
Does anyone else get a chuckle that the mad 666 trader had a fat thumb moment and put a trade in at 698 this morning? Must be trading on their phone as the 6 and 9 so close. Gave me a laugh. Trying to make a point and wasted a trade lol.
Lots of questions still outstanding here:
1. How is the settlement going with Feenix and
2. How is the uplisting?
There are many other smaller questions but basically they relate to those major ones. It seems support has come in around $.02 as there was 3.2 milly in bids from 3 different market makers. Is that a statement as to something going on or someone speculating what's going on. HMMMMMM
It does seem that things are happening with the Water company with Hawaii and the people involved.
https://www.bizapedia.com/hi/altitude-water-hawaii-llc.html
Seems like Joakim Noah's Mom and someone from the island that runs a 501 (c) 3 have formed a company there and units are on their way from Twitter.
Aquavera has been more active and hired a fundraiser.
The plot thickens....
Wow there are some big bids up right now
Well, it’s nice to see the volume increasing and it seems from the update that Mike has some things brewing. I can't remember which poster stated that they had gone back and looked at the last couple of updates Mike has given and he has come through with all his promises. Let’s see if he stays consistent. I think he will. He is a little late on earnings as he did say this year (late 2022), which I guess could be the only criticism. I also understand that building a company takes time and I'll allow a couple of quarters late.
This is one of my two in the Stinky-pink land space. Both have potential but I’ve gotten crushed lately in both. I’m definitely ahead overall on XCRT but holding shares for the long term, as I got in when Mike took over and traded some stupidly but happy overall. My mistakes have cost me more profits here but I just hold and wait for the right time.
It will be interesting to see which subsidiary of $XCRT generates revenue first. With a new division spoken about by Mike in his update, that could be the early favorite. Oooorrrrr AfiyaSasa with the rollout. Get your tickets here and popcorn. It should be a good ride IMHO. Hey anyone seen Faith lately? This board gotta have Faith!!!!
Looks to be a pretty comprehensive overview given by Mike. He has set the 2nd Qtr of 2023 as when we should see revenues. He's been pretty on target over the past 1 1/2 years.
Will be interesting to see this new division and who they add to the Advisory Board. That should tell us something.
Also diversified revenue streams with different time frames-
Short-term-
Health-care/Skin products- US
AfiyaSassa- Africa
Longer Term-
Surgical drill
Cancer Patents
Should be an interesting month IMHO.
OK no other commentary other than I'm still here and just have not been posting lately for different reasons
So we have a new nice article on XCRT distributed-
https://otcstockz.com/otc-stocks/in-the-penny-stock-market-xcelerate-inc-otc-xcrt-is-emerging-as-a-top-healthcare-service-stock-to-watch/
My takeaway from the article is if you have been here for any period of time- this article explains why you have stuck around. We’ve repeated it numerous times on this board. But this article is not for us- it’s for new eyes and its well done for people not familiar with XCRT’s accomplishments.
It lays out the positives of XCRT starting with the Management and Advisory Board Members. Every time I read it; I think about how impressive it is. To compile that many quality people on a vision without huge dilution or paying exorbitant salaries shows Mike’s management ability and contacts.
It talks about how this abandoned shell has cleaned itself up from a bankrupt dental practice to now being listed on the OTC QB. Now it is a shell risk only. That was a 2-year process and have to say took so funds to achieve but added value to XCRT
It talks about the business model that Mike has developed for the company. I view it as how the drug industry has changed over the years. The Big Boys don’t really have an R & D department anymore. They look at these smaller players developing the new drugs and don’t have the capital to bring their new drugs to market. The big boys come in and partner with them to provide the capital and the connections needed to get it approved (I won’t get on a soapbox and go into the corruption of this and how the FDA is funded by the Big Boys- that’s a whole different story).
It seems XCRT is doing this for technologies and patents but without the high costs of R & D., It is structured as an incubator to bridge the gap in the healthcare industry of new technologies and finding the right big-boy partner. It is doing it without a monthly burn rate that causes huge dilution but gives companies and technologies the ability to have a public company with incredible contacts in the industry open doors.
It seems XCRT has a 3-pronged approach to technology viable in the healthcare industry-
1. Homegrown devices- This is the drill that uses the metal alloy from Steve Gravely’s munitions patented and being adapted to the healthcare industry. With alloy nerd Dr. Anja joining the team in association with Dr. Ellegala’s surgical experience they received the medical rights to the alloy and have spent money to file new patents and develop the instruments.
This is usually an expensive process but it seems through equity in XCRT in shares the team has been willing to work for the future and belief that this product will work. To me as an investor, it makes sense that a metal that is resistant to heat and vibration would make sense in surgical instruments and having someone like Dr. Ellegala and his connections would be able to place this technology with some big players.
Why hasn’t this taken off? In my opinion, it is strictly a result of capital and the model that Mike has employed. Things take time when people are working for shares. I believe the Afiyasassa deal has used the capital they originally budgeted for the prototypes and when/if they start generating revenues from it it will be re-invested here.
Instead of diluting in a difficult capital market raise during the economy, they slowed down this project. It’s interesting that it really isn’t talked about in the article but given previous discussions and filings we that do DD know it’s still in the portfolio for future revenues.
2. Patents for healthcare products- Purchase from HS Pharma. There was over $10 million invested by HS Pharma in these patents. This is the expensive process I was talking about in the introduction. HS Pharma felt it was better to take a piece of XCRT and sell them the patents for shares then try to take the next step. Why would they do that?
a) The team at XCRT has the contacts to make this happen. Dr. Barry Marshall- a Nobel Prize winner and well-known person for taking his own medicine to prove his theories probably has great contacts for these products.
b) They needed protection in other countries and XCRT would invest the money to make that happen.
c) That’s not what they do- they do research and develop healthcare products. They finally agreed to continue to do what they do best and take a piece of equity and let another team develop the sales pipeline.
They acquired these patents in May of this year. For people to say nothing has happened with this are not paying attention-
1) In June they brought Cathy on to handle and develop the contacts for the marketing of these products-
https://www.otcmarkets.com/stock/XCRT/news/Cathy-Scangarella-to-Join-the-Advisory-Board-of-Xcelerate-Inc?id=360215
2) In August they announced filing patent applications in Korea and Europe followed by an announcement that they would market consumer products off these patents.
https://xcelerate.global/additional-countries-add-patent-protection/
Again, a perfect example of an incubator process- hire the person to run the program that has the right contacts (Cathy is in NJ which is a hotbed for consumer pharmaceutical companies) and strengthens the protection in the areas you plan to market. Also, these filings take money and time.
3. Afiyasassa- Where most of the money was spent this year from listening to Mike’s interviews. This makes sense as there is a huge need here and Dr. Ellegala has huge contacts in Tanzania. The article focuses mostly on this project as it seems to have the most promise for generating revenues in the near future.
a) Again, this is the incubation process. They are taking a proven technology in the US from an associate of Dr. Ellegala and introducing it to a place of need where Dr. Ellegala has huge connections as evidenced by 4 hospitals signing on almost immediately
.
b) This takes time and money to implement this system as everything has to be translated into Swahili and then implemented into the structure of the hospitals and the phone systems used there. It takes staff and capital to do that and where I imagine most of the monies they raised from the Reg A have been spent. This takes actual jobs and salaries to accomplish. Here is the scope of the language this is being translated into-
https://www.un.org/africarenewal/magazine/december-2021/swahili-gaining-popularity-globally#:~:text=With%20its%20origin%20in%20East,Yemen%20in%20the%20Middle%20East.
The revenue will be from the implementation of the system once the beta tests prove out. Imagine if the Ministry of Health decides to pay $1 for each user. That would make sense given the need for people to get medical care given the lack of doctors in Tanzania. Here is the quote from the article “When you consider that Tanzania has a population of close to 60.8 million people, many of whom are in urgent need of medical care, the program’s initial reach would represent a total catchment area of almost 20 million prospective patients.”
c) This would cost the Government $20 million to give healthcare to 20 million people and generate $20 million for XCRT. I think they could get a strategic partner involved for this type of opportunity not only for Tanzania but the other 13 countries that speak Swahili.
That’s my evaluation. With XCRT I just keep looking at share increases which have been a minimum IMHO and necessary for the growth of the Company (hiring Cathy and shares from Reg A is all I have seen). I don’t listen to the noise and keep an eye on progress and management. I know this is OTC land and what warning signs to look for but the structure Mike has built and executed looks sound. Yes, I’d always like to see things happen quicker but I also know that business is not easy and takes time to develop-not what investors on OTC want to hear.
As I always say- do your own DD, know what you own, and make your decisions based upon your own risk tolerance and financial planning of when you need your invested capital. I hope everyone has a wonderful, safe, and healthy holiday season.
WARNING- Long post but full of information
Since I am no longer Premium and will not come back to iHUB premium I only have a certain number of posts so I have to make them count. I may even leave all together. But that’s a decision for another day.
First C 2 da E-
Most people haven’t been involved in an uplisting. It’s promised so many times in stinky-pink land but rarely is it done. There is a reason. First- reality vs perception. It’s a great tagline. Business is so good we are looking at uplisting and the pumpers go crazy-right?
Facts are few companies have the core business model to accomplish this and meet the requirements of NASDAQ. There is much more transparency required to be listed on NASDAQ as you not only have SEC requirements but NASDAQ requirements to meet. Even fewer have the cash or money to invest in an uplisting. It’s expensive.
It’s also difficult because you are changing the type of investors or shareholders you are pitching to. Most OTC pinkies use iHub and Twitter to present their business to investors or stock boards. On NASDAQ you actually have analysts and companies like Seeking Alpha to present the business model or evaluate the earnings projections. See in this playing field, it’s not enough to just have an idea. You have to have a plan. And this plan has to be proven in firm numbers called revenues, market penetration, burn-rates, and margins, market cap, etc.
Most investors in stinky pink are momentum players. Their motto is “I don’t care how the business is doing, just give me an announcement to pump and get the crowd to follow”. They need the hype to satisfy the need to flip and move onto the next. They need the liquidity to fund their personal cash flow.
NASDAQ investors are more of a longer-hold type. There are mutual funds, analysts, and players that know going in it may take a year for the business model to develop and be put into place. They are investors not traders (for the most part). Big difference.
By saying this I’m not being negative to the OTC- it’s just reality. I’d be a hypocrite by being negative because I have taken advantage of “runners” and made my share of profits in companies I didn’t believe had the possibility of being successful but they know how to play the hype game. You have to consider all of this when doing your DD. You have to know what field you are playing on.
Changing to a different type of shareholder is not easy as evidenced by the last 8 months of ALTD trading. It’s why I also agree with IBB on some of his evaluations of pricing. What I do think is that pain has already occurred and the big boys have set the $.025-.035 as accumulation points. I may be wrong here but it seems to have a net at these points.
The reverse of course is a perception thing and is viewed differently in the two different playing fields of OTC and NASDAQ. I’m sure C 2 da E that you have been involved in many stocks that have done a reverse in OTC. It is perceived as a bad word for a good reason. In most cases, it is when the company checkbook is out of money and the outstanding share level has reached its max level. I call it wash, rinse, repeat. It is commonplace when the business model has failed and the company has the next big thing to hype to the investing public but needs the stock to pay people.
In NASDAQ land it is not so bad but a tool to meet certain requirements and reset the Capital structure of a company. The concept is legit- no one loses equity as the share price reflects the split. But in OTC it’s usually for the next round of dilution. In NASDAQ and in this deal- the management team has as much to lose as the shareholders. They have less shares and are now required under NASDAQ rules they have to have an independent Board of Directors (more on that later) which means they cannot just issue more shares like they can on OTC.
Management would only be doing this if they believed in their business model IMHO. So yes, in the markets we continually fight reality vs perception and the core base of retail investors which are used to playing in the OTC field see the word Reverse and it causes panic. In the NASDAQ world they evaluate the whys more. They also feed on it and why the big boys and the big institutions almost always win.
Finally the difference and negative impact of going to NASDAQ is the quiet period. You have to continue to trade in OTC while trying to uplist with the “I need news” momentum players of OTC. We have seen the result of decreasing share price over the last 6 months (May when first S-1 filed until now).
What has happened over that period of time?
1) They acquired Rush soccer- the largest Soccer club in the world- https://rushsoccer.com/
2) They signed a deal with 360 Player- a company that provides platforms for some of the largest and recognizable soccer clubs in the world- https://en-us.360player.com/
3) They acquired a world renown resort that they have operated their business on for the past 12 years. https://ih.advfn.com/stock-market/USOTC/altitude-pk-ALTD/stock-news/89022608/altitude-international-holdings-secures-world-clas
a. And did it with well-known names in the industry and NYSE companies- Wyndham and Storer Capital.
b. Partnered on a $90 million dollar deal with the other players making the announcements.
4) Signed a well-known and respected investment banking firm- EF Hutton
Where have you ever seen this in OTC pink land? It is a rarity.
Now let’s get into some meat and see what the potential NASDAQ investors could see here and why these NYSE companies are partnering and have invested $90 million in this OTC Company ($55 for purchase, $25 million for PIP- Property Improvement Program and $15 million reserve fund).
Momentum players are used to this soaring the stock price and ask- what is wrong? But if you only 8-K this stuff who sees it? Only those already holding. New eyes don't see the news story.
10 Q- https://www.otcmarkets.com/filing/html?id=16163893&guid=N0_-kaYBuov1dth
First, each of the last 2 Q’s have been filed almost a week after the closing of the QTR. That tells me that ALTD has the staff and team in place and has been working on the financials constantly with the big boys and why they were willing to invest the $90 million.
It also correlates with the uplisting as they have to meet filing needs of the NASDAQ.
Let’s look at the coverage the last Q generated-
Seeking Alpha-
1. When was the last time you saw Seeking Alpha cover and OTC pink earnings? Well, here it is- https://seekingalpha.com/news/3901001-altitude-international-holdings-inc-reports-q3-results
2. Article and analysis of Q- https://seekingalpha.com/pr/19004626-altitude-international-holdings-provides-third-quarter-2022-corporate-update-ytd-revenues
3. Article when the S-1 was filed- https://seekingalpha.com/news/3905157-sports-education-provider-altitude-proposes-10m-offering-nasdaq-uplisting
AccessWire-
1. 10 Q article- https://www.accesswire.com/723689/Altitude-International-Holdings-Provides-Third-Quarter-2022-Corporate-Update-YTD-Revenues-Increase-40-to-77-Million
This is the type of coverage is what you see from a NASDAQ type company. On OTC you have Joe’s Stock Board or Penny Platinum plays (no disrespect to them and they are part of the OTC landscape) but when you have a quality IR firm like MZ Group, this is the type of coverage you get. While MZ may have its hands tied with the Quiet period, it is obvious that its connections in the industry are being utilized. I think more eyes get on this than a board on iHub IMHO.
I think I have covered in other posts the revenue increase and the highlights to that filing as has Seeking Alpha (the Year over Year Revenue Growth). They focused on the revenue growth and the increase in cash on hand. Let’s move on to the S-1
S-1/A- https://www.otcmarkets.com/filing/html?id=16187102&guid=C5_-kpRtlDscdth
Finally, the Amendment came out with pricing and more details from the May 5 filing. This is the important one because it means that EF Hutton believes they have approval for NASDAQ (why file this when the S-1 states they will not go through the offering unless they get approval for NASDAQ). Remember you have two regulatory agencies reviewing these filings and making comments- SEC and NASDAQ. Obviously, they are past the comments phase IMHO. Shouldbe soon C 2 da E
It's a long document. Nobody reads anymore. It again is the difference between OTC and NASDAQ playing fields. When you play with the big boys- they read EVERYTHING. Most on OTC can’t be bothered……give them a short PR they can hype. Unfortunately, most won’t read this post and if you have gotten to this place, this is where it gets really good.
Here are the nuggets-
The Board of Directors Question has been answered BIG TIME. Page 61-62 of the S-1/A. Have you looked at the nominees? WOW is all I can say. There are 3 nominees that have agreed to join and each one’s skills and background fill a significant need in the company and each one has been highly successful in his field.
1. Paul Nussbaum- This guy is a pioneer in the hospitality industry. Here is what the S-1/A says about him-
“Mr. Nussbaum, 75, combines over 30 years of experience in the hospitality industry. Currently, he is Chairman of Waramaug Hospitality LLC, a privately held hotel owner and asset manager, which he founded in 2011. In the 1990s he served as founder, chairman and chief executive officer of Patriot American Hospitality, Inc. (NYSE: PAH), a paired shared real estate trust (and its predecessor Patriot American Group) which owned the Wyndham, Grand Bay, Maimaison, Summerfield, and Clubhouse proprietary brands and as Chairman of its successor, Wyndham International (NYSE: WYN). Mr. Nussbaum has a B.A. from the State University of New York at Buffalo and a J.D. from Georgetown University Law Center. His numerous prior educational, philanthropic and eleemosynary activities include service as a Trustee of Colby College in Waterville, Maine, and Zale Lipshy University Hospital in Dallas, Texas; Board of Visitors for the Georgetown University Law Center; Board of Advisors for the Wharton Real Estate Center of the University of Pennsylvania; Governor of the Dallas Symphony Orchestra; Life Fellow, American Bar Association; Member of the Urban Land Institute; Fellow of the American College of Real Estate Lawyers and the Dallas Citizens Council. He has been the recipient of the Centennial Humanitarian Award by the National Jewish Hospital, the Ellis Island Medal of Honor, Distinguished Alumni Awards from both of his alma maters and the Julian Park Award from SUNY Buffalo. Mr. Nussbaum has received an Honorary M.A. from Colby College and an Honorary PH.D. from Johnson & Wales University.”
A. Made the Wyndham brand.
B. Another NYSE status company/group involved with ALTD.
This is a great addition to help lead this Wyndham property and has experience in this field.
2. David Bain- Huge experience in the financial/brokerage sector. Another area important to the growth of ALTD. Again here is what the S-1/A says-
“Mr. Bain, 49, has over 22 years of experience as a research analyst and managing director of investment banking focused on the leisure and hospitality industry. Since 2021, Mr. Bain has served as a senior research analyst at B. Riley Securities in Newport Beach, California. Previously, he was with a managing director with ROTH Capital Partners, Sterne Agree CRT (now Stifel) and Merriman, Curhan and Ford, working extensively with public and private leisure companies and institutional investors. Mr. Bain has a JD with an emphasis in corporate law from Loyola Law School in Los Angeles, California, MBA from Pepperdine University with a major in finance, and a BA in history from the University of California, Los Angeles (UCLA). Mr. Bain is an active member of the American Bar Association, the California Bar Association, the Business Law Association, and the Public Interest Law Association. He was a scholarship athlete while at UCLA.”
Are you kidding me? Financial background in the hospitality industry. ROTH Capital Partners and now a research analyst at B. Riley Securities. This is a PERFECT fit. Breunich knows how to build a team.
A. Rated in the top 3% of analysts in the hospitality gaming sector- https://www.wallstreetzen.com/analysts/david-bain
87 out of 4,097 with an average return of 43%. With those numbers he’s joining the ALTD Board?
B. 2017 announcement of joining Roth as Senior Analyst- https://www.wallstreetzen.com/analysts/david-bain
C. B. Riley Securities Announcement of Bain joining- https://www.abladvisor.com/news/30710/b-riley-securities-announces-key-additons-promotions-to-equity-research-divisio
So now on top of the person who is a pioneer in the Hotel/Hospitality industry joining the Board you have the top analyst with top notch NYSE Firms joining as well.
3. Jeffrey B. McNeal- maybe not the glitz of the other two but needed in the operations and oversight of the financials. Here is the Bio-
“Mr. McNeal, 60, combines 40 years of experience in finance serving as chief financial officer of several companies. He currently is the senior vice president of financial services for MCR Health, Inc., in Bradenton, FL and has served in that role since 2010. From 1998 through 2008, Mr. McNeal served as chief financial officer of IMG working with Mr. Breunich. He received a BSA in accounting from Christopher Newport University in 1989 and MBA from the University of Tampa in 1994. Mr. McNeal is a licensed CPA and an insurance, real estate, and mortgage broker. He is also a veteran from the United States Army.”
A. With Greg at IMG when they built the premier academy at that time
B. Currently with MCR Health- not a small organization that provided $59 million in Health Care for uninsured- https://mcr.health/ Not a small company.
C. Brings background in the Academy business and healthcare which is perfect for the wellness centers and working with Non-Profits for the Water business.
D. More hands on needs then the other two new Board Members.
This is exactly what I was looking for and very pleased with the results. No fluff. High-quality Board Members and experts in the fields of Altitude International.
Other tidbits-
1. North Miami Beach Academy- Page 51-52 – In addition to the park (which is up for bid) they are now operating on FIU Campus- a huge growth opportunity for those kids in Miami area. Here is the quote from the S-1-
“NMBA was formed in Florida in May 2017. Through a bid process, the City of North Miami Beach awarded NMBA the right to operate a stand-alone academy at Judge Arthur Snyders Tennis Center. The bid process occurs every three to four years. The bid is currently underway for another term. In the event, Altitude is not successful winning the re-bid, we have already taken precautions and moved the education component of the business and secured the tennis courts at Florida International University Bay Biscayne campus (“FIU”) in North Miami. The new relationship with FIU may prove to be a long-term academy operation for Altitude whether we win or lose the bid.
NMBA is a unique academy operation in the heart of North Miami Beach. The market initiative targets a 20-minute radius around the Academy address. The location is very close to Aventura, Sunny Isles, and Bal Harbor. The demographics in this area have an extremely high culturally diverse draw and a broad array of wealthy customers. Word of mouth, websites, social media channels, and the high demographic local market deliver the traffic for this business. The business has significant margin opportunities on small revenue, low volume, and low cost. Public park relationships represent a significant growth opportunity for Altitude’s academy businesses.”
2. Altitude has been advised that EF Hutton will make a market in the stock- pg 84- “We have been advised by EF Hutton that the underwriters intend to make a market in our shares of Common Stock but that they are not obligated to do so and may discontinue making a market at any time without notice.”
3. Lock up agreements for management and 5% holders- pg 86- “The Company, each of our directors and executive officers, and our 5% and greater stockholders, have agreed not to, subject to certain limited exceptions, offer, pledge, sell, contract to sell, grant any option to purchase, or otherwise dispose of our Common Stock or any securities convertible into or exchangeable or exercisable for Common Stock, or to enter into any hedge or other arrangement or any transaction that transfers, directly or indirectly, the economic consequence of ownership of the shares of our Common Stock, in the case of the Company for a period of 180 days after the date of this prospectus, and in the case of our directors and executive officers and our 5% and greater stockholders for a period of 180 days after the date of this prospectus, without the prior written consent of EF Hutton.”
In conclusion (sorry but this requires a long dive and lack of posts means I have to do longer posts although I am getting sick of iHub and may move on) it seems that ALTD may be the OTC unicorn. The company that actually uplists. We’ve all heard companies promise this but this is one company that has taken the steps to follow through and has filed the documents to do it. It’s not words-its action. All with the appropriate regulatory filings.
Building a business (for those of you who have done it) is not easy. Especially in the environment, we have seen over the past 2 years- COVID, economy in a recession, interest rates rising, and the stock market in a downturn. That being said I have done significant DD over these two years.
I am obviously down in my investment in ALTD. I went from significantly up and then breaking all of my trading rules (averaging up, never falling in love with a stock, etc) to significantly down. I tried to identify the risks and the strengths of this company. I think I did that but didn’t listen at times.
The strengths were the business model, the experience in the team, and the micro-economy these subsidiaries create in many areas that are recession-proof (education, water, sanitation). The negative was the lack of public company experience of management. I think I was right on both counts as the S-1/A shows.
Greg and his team built the premier academy at IMG and he built the foundation at Club Med Academies which is now Altitude Academies. He has grown revenue in a difficult time and put some very significant pieces together over the past year (Rush and the property).
He also did a bad deal on the merger as the stock should have been reversed then IMHO.
Everyone can point fingers but you cannot run a company and grow without making mistakes. I made mistakes in my trading as well. What is important to me as an investor/shareholder is how these things are handled and whether they are committed to building the business. From what I’ve seen IMHO the answer is yes.
There is still a long way to go and many hurdles to overcome but I believe it is going in the right direction. Happy Veterans Day to all who served.
Correct. Which bodes well since they filed the Amendment to go forward with S1
Golfer
Not sure as reading SEC regulations is difficult and not my forte.
But my understanding from what I have read is it carries forward until the offering is complete and then a 10-day (or 25-day) curing period after the NASDAQ uplisting is complete for trading (as I said not many of these pinkies uplist and there are exemptions to each rule and not really sure which ones $ALTD qualify for.). I would imagine that the offering period (which starts now) and the curing period of trading would have a quiet period as the regulators do not want announcements to affect the offering or the trading.
Just my 2 cents and opinion but there is a lot to digest here.
I have to choose my posts wisely from now on as I canceled premium after a disagreement and "discussion" with IHub Moderators based on principle. I see I only have 12 posts left this month so unfortunately, my posts will be longer. and chosen wisely.
So C 2 da E-
You just got your question answered about the "quiet period" with the S! filing today. They previously filed an S-1 in May with EF Hutton as the underwriter to raise funds and go to NASDAQ. That has required them to go quiet.
Here is a link to an overview of the quiet period-
https://www.investopedia.com/terms/q/quietperiod.asp#:~:text=The%20quiet%20period%20begins%20when,underwriters%20participating%20in%20the%20IPO.
Here is the quote
"Before a company’s initial public offering (IPO), the quiet period is an embargo on promotional publicity mandated by the U.S. Securities and Exchange Commission (SEC). The quiet period prohibits management teams or their marketing agents from making forecasts or expressing any opinions about the value of their company. For publicly-traded stocks, the four weeks before the close of a business quarter is also known as a quiet period."
While it says IPO and $ALTD is already public- the S1 and uplisting has the same requirements..
Here is a link to the first S1 filing on May 5, 2022- https://www.otcmarkets.com/filing/html?id=15785074&guid=C5_-kpRtlDscdth
They did PR the acquisition as it makes sense since it materially changes the business and dramatically enhances the balance sheet as evidenced by the last Q, but to my understanding, they could not do any forward-looking statements- just the facts and why there have been no other PRs.
It makes sense they wanted to close on the property before the S1 went live and the uplisting was filed. Based on the Q they definitely have the assets on the balance sheet to qualify.
So much to read in the S1 but here is a quote in the summary-
"Our Common Stock is currently quoted on the OTC under the symbol “ALTD.” In connection with this offering, we have applied to have our Common Stock listed on the Nasdaq Capital Market under the symbol “ALTD”. If approved, we expect to list our Common Stock offered in this offering on Nasdaq upon consummation of this offering, at which point our Common Stock will cease to be traded on the OTC."
Any doubts that this was the plan and goal this year should be quenched now. This is filed with SEC and NASDAQ.
Many companies on the pinkies talk about uplisting but $ALTD has been doing it and making the filings and increasing the balance sheet to meet requirements. It is a rarity but has hurt the stock price as the lack of news since May has allowed this to be beaten down as well as the overall weakness in the OTC and broader markets.
Wow what just happened? From 4,000 shares traded to 400,000 in 4 mins.
Thanks, BB. Looking forward to the update.
You are correct Golfer. Busy week but will give my input this weekend
Me too. Can’t wait to see it. Lots of great nuggets in the Q as well. Got my notes will have a post soon
The 10 Q has just been released. Have no idea what it says (I will look tonight) but they filed early again.
The last Q was filed on July 29- the last business day in July. Let's see if they are early. To me, this shows how ready they are for the uplisting. I'm also interested to see if there is revenue growth and how the transaction is shown on their books.
Tic Tok
What people overlook here is that this shows the steps to NASDAQ are taking place. In OTC land there is no requirement for officers to disclose their contracts but there is on NASDAQ.
The next thing we should see is the new Board members. NASDAQ requires a majority of independent directors. Right now all of the Board Members are not independent so it should be interesting to see who is joining the team.
Stay tuned.
Hey creaky- nice to see you here.
Can't question 5 IMHO. He doesn't know but it sounds good and negative so goes with it.
Any trader knows the spread before executing a trade so those moves look to see what the market warrants. Typical trading that is trying to perceive as something it's not.
Like that 200,000 share bid.
This is interesting on the $ALTD water front-
https://www.aquavera.org/copy-of-project-maka-in-cameroon
Seems Altitude was chosen and the design is on the website.
Pictures show them measuring-
https://www.aquavera.org/copy-of-project-maka-in-cameroon-1
Noah's Arc is on there too. HMMMMM
Golfer-
Nice catch.....hope they use it soon.
BTW also saw on the $ALTD Water LinkedIn page they are hiring assemblers and HVAC technicians. Interesting. This corresponds to the increased activity on YouTube.
Chem
I look forward to discussions with people who don't agree with me as long as they have reasons and backup for their assessments. I want to be right in my decisions not try to prove I'm right without considering other opinions. A good debate goes a long way.
That's what this board is for.....to me anyway.
Thanks for the thoughts and appreciate the conversation.
Correct- but you asked lol.
It's why analysts try to make estimates before earnings come out on stocks. the thing is most OTC stinky pinks don't have earnings to evaluate. They are talking about potential. We here on the $ALTD board are actually talking about earnings estimates based on past performance. This is real.
There is a history of earnings and acquired property with a LONG history of earnings and is tangible- something you can touch or stay at. It also has businesses operating for over 12 years with earnings. For a stock trading mid .03s to mid .04s that's rare.
The dilution will come from the S-1 raise but will be for actual money for the growth. Again- not a toxic death spiral with no real business. But agree it is an unknown at this time.
Good luck my friend. always good to bounce ideas around with you.
Chem-
Aye, there is the rub. I think we have to set some foundational guidelines and SWAGS to get there.
1) One of the biggest complaints that the Academies had was that Club Med looked at the school and sports programs as separate. They never let them talk to the customer before they arrived. Once people arrive it is more difficult to capture additional revenue. The programs it seems they are putting in place will focus on that. Adding upgrades to the standard all-inclusive will increase revenues.
2) Club Med made it difficult for the Academies to block off rooms for training for sports clubs. Last year MLS teams FC Miami and soccer clubs from Uruguay and Panama and the Washington Spirit Women’s Soccer team came to train. They probably lost 4 other clubs due to the inability to block off rooms. These are $250,000 a pop. Using the PIP (Property Improvement Program) money- ALTD will build 2 more International Soccer fields and make this a training destination as well as hosting Rush programs.
3) Adding more Academies- they already announced a basketball academy and if IMG is another example many more will follow. Each Academy will generate an additional $112,500/ quarter for every 10 students (again conservative as I am averaging a tuition of $45,000/student)
That being said- if Club Med did $30 mil in revenue last year then $7,500,000/ quarter (I know certain quarters are greater and 4th quarter with Thanksgiving and Christmas is the largest but let's just divide that by 4). Since they are just taking over let’s discount that by 70% let’s estimate about $2.25 million ($30 million/4= $7,500,000 x 30%) and with the revenue remaining steady ($2.6 million) about a $5.5 to $6 million quarter. Again just a very conservative SWAG but these numbers are based off of revenues shown in the filings and from DD on the Academies business.
I'll take a stab at it, but I agree with your assessment that it's difficult at this point in time with all the subs. I'm guessing that we will see nothing from the resort as they didn't open until Oct. 5 but there may be some from the FPL rooms as Ian made landfall Sept 28 so maybe 4 days.
The last Q was $2.6 million so somewhere there as maybe the Academies increased (new players for 1st semester although most will be prepaid now as each day they recognize the revenue). Should see revenue from Magic Altitude sale as it was installed and completed in 3rd Quarter (change from prepaid to revenue- about $60,000) and Rush I believe increased some. So maybe in the $3 million range is my guess ($2.7-$3 million).
Again just a SWAG- (Sophisticated Wild A$$ Guess). We shall see shortly.
10Q is due Nov 15 but last quarter they filed early - July 29, 2022 (Q was due August 15) so I expect the same thing with the uplisting on the horizon.
I agree this is a great situation at these prices.
Welcome to team $ALTD/Rush. You obviously see the benefit of the Rush acquisition and now they have the facility. Lots of good DD and people here. If you have any questions just ask. Mr. Breunich is the person that built IMG Academies.
2015 deceiving again acting like it’s recent.
No date, no information, no nothing
One final thing.
Storer, Wyndham, Zel, Feenix- you think they did DD on Mr. Breunich before ponying up $95 million to invest in his company? I trust them.
This morning after the facts of what Mr. Breunich and his team built at IMG with links and relevant articles comes a slew of posts looking to deceive. They show
1) a case that has no date and Greg is not even listed and no information on what the case is about.
2) Two articles on a female teacher at IMG in 2021 that claims to have had sex with a student- Again irrelevant Greg was at Altitude at the time.
3) A bankruptcy filing for Mr. Breunich in 2009 which is after he was pushed out of IMG by Ted Fortsmann and by the way the time of the economic collapse.
I welcome counterarguments and different opinions. I don't want or expect everyone to agree with my evaluations. But to post stuff to deceive and not even relate is just wrong IMHO.
I always encourage people to do their own DD, read info and make investment decisions based on their risk/reward tolerance.
Where does it say any of that???? Deception.
Another of the same story that does not relate at all.
A case from 2021 and established already Greg left way before. And by the way, no matter what you build a huge empire and look at stuff happens. How does this counter the fact that Greg and Gabe built IMG from the ground up and it is now a powerhouse and shows that Greg and his team did it once already?
Totally misrepresented as to the point and not when Greg was there.
The link doesn't have a date. Has zero information and Greg is not listed. Talk about making stuff up
History Lesson 101 on Mr. Breunich and ALTD
I realize there may be some new eyes on this stock and not privy to some of my earlier DD and why I got involved in this stock. I will attempt to give some background with links I posted when Mr. Breunich took over ALTD.
First here is a link to the PR back in January 2021-
https://www.otcmarkets.com/stock/ALTD/news/Greg-Breunich-Named-CEO-of-Altitude-International-Holdings-a-Leader-in-Training-Athletes-in-Simulated-High-Altitudes?id=285619.
Here are some quotes-
"Breunich began his career in 1978 working with Hall of Fame tennis legend Nick Bollettieri, who trained developed and coached superstar tennis champions. In 1987, the late Mark McCormack, the pioneer of the modern-day sports marketing industry and founder of IMG's Group of Companies, purchased 100% of Bollettieri's tennis academy operations. Not long after, Breunich expanded the newly purchased academy operations into multiple sports, academic schools, high-performance training, as well as real estate development and several other related businesses. IMG Academies became known as the gold standard for training, educating, and building highly marketable superstar champion athletes along the way."
All of this correlates with IMG Academy's timeline and About Us sections.
Here is an article on IMG in 2018. remember most of the infrastructure was already built by Mr. Breunich. I think it foreshadows what we will see here.
https://www.bizjournals.com/tampabay/news/2018/08/31/with-90-new-acres-set-to-be-developed-bradenton-s.html
Here is an article from when Mr. Breunich was building the Academy in 2003- sound familiar?
https://www.sarasotamagazine.com/news-and-profiles/2003/12/the-img-effect
Just read this from the article-
"The present academy started small, but with a bang, in the late 1970s. Tennis coach Nick Bollettieri envisioned a tennis boarding school that prepared students for college. As he added students and a camp environment, the academy concept took shape. Big-name players like Andre Agassi, Jim Courier and Boris Becker spent time with Bollettieri, and soon the Bollettieri legend was born. When he joined forces in 1987 with International Management Group-the world’s largest sports marketing agency representing famous athletes, with corporate annual revenue of $900 million-the seeds were planted for today’s mega complex."
Can you see the vision now- We all hear about IMG Academy but from the small beginnings came to this in 2003-
"What began as a small cluster of tennis courts now includes dormitories, meeting rooms, fitness centers, playing fields, pools and IMG’s own villas-a complex of 74 residential units, which sell between $220,000 and $500,000. IMG’s new Academy Park is home to baseball, soccer, a huge golf practice facility and Phase Two of the villa project off 53rd Avenue West."
Starting to get it?
Here's the vision-
"The Bradenton campus also hosts huge sports events, such as last fall’s Eddie Herr International Junior Tennis Championships, which brought in more than 1,000 top junior tennis players from 70 countries. These players, their coaches and families pump even more dollars into the economy. Just as importantly, the visitors discover the Academies and Southwest Florida, and spread the word.
IMG’s latest venture is hosting corporate retreats with a sports twist: business in the morning and games in the afternoon."
Like Hospitality Funding is quoted as saying- ALTD and Mr. Breunich now have the property in one of the fastest growing cities in the US-
Want proof- BOOM-
https://www.tcpalm.com/story/news/local/st-lucie-county/2019/11/15/port-st-lucie-is-one-of-the-fastest-growing-cities-in-america/2573248001/
I'll take some time and give more DD later. Just know what you own and digest this large amount of reading material.
I believe he got the funding so quickly because he did it before and knows how to put it all together. Read his shareholder letters. I just think IMHO taking advantage of the quiet period and the beaten-down market is smart with this OTC soon-to-be NASDAQ company. A Market Cap of $14 million (close to the revenues of $10 mil) makes sense to me.
Do your own DD and see if it makes sense to you.
Proof of Purchase-
Here's the scorecard-
Saying Altitude acquired the Club Med Property-
1. Storer Capital- NYSE Company- REIT- put up $80 million
2. Zel Capital- brokers the deal between Club Med and ALTD
3. Wyndham- NYSE Company- largest Hotel chain in the world. Said they were hired by ALTD.
4. OTH- Management company hired by ALTD.
5. Feenix Capital- put up $15 million in a subordinate position for the reserve funds and working capital.
6. Hospitality Funding- brokered the deal.
7. Club Med- the seller who said they sold to ALTD
Yes, it is a lease buyback as has been discussed and verified. The lease is for 60 years plus extensions and has the opportunity to fully purchase at 110% value ($88 million). They run the property, hire the people, and receive the revenues. It is a structure (as Zel is quoted) they have developed in the real estate market that has been proven and successful and used by NYSE REIT's (direct quote).
Everyone one of these prestigious companies has said "ALTD acquired".
Since the merger ALTD has-
1) Filed certified financials showing over $7 million of revenues and revenue growth quarter over quarter of approximately 35-55%.
2) Acquired Rush soccer- the largest soccer club in the World. And it's not just ALTD saying it, Rush is saying it and posting videos on it.
3) Acquired a training platform for Rush Soccer with 360player
4) Opened up their first school at a Rush Soccer club in Hawaii and their online learning subsidiary Altitude Education.
All of the above have links and quotes from 3rd parties which have been extensively provided
Make your own investment decisions and do your own DD. For me, I trust Storer, Wyndham, Zel, and Rush with their DD